U.S. retail sales tumbled 8.7 percent in March, the largest monthly drop ever

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U.S. retail sales plunged 8.7 percent in March compared to February, the U.S. Census Bureau reported on April 15. It was the largest monthly decline ever as widespread, mandated business closures amid the coronavirus pandemic severely damaged consumer spending. Economists had forecast an 8 percent month-over-month decline in retail sales, according to Reuters. National retail sales fell […]

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New York manufacturing index plummets to lowest level in history

Manufacturing & Engineering, Subscriber Only

New York manufacturers are feeling the impact of the global COVID-19 pandemic with a “sharp decline” in both orders and shipments. That’s according to the April Empire State Manufacturing Survey released April 15. The general business-conditions index “plunged” 57 points to -78.2, “its lowest level in the history of the survey.” The index fell 34

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New York manufacturers are feeling the impact of the global COVID-19 pandemic with a “sharp decline” in both orders and shipments.

That’s according to the April Empire State Manufacturing Survey released April 15. The general business-conditions index “plunged” 57 points to -78.2, “its lowest level in the history of the survey.”

The index fell 34 points to -21.5 in March, which, at the time, was “its largest point drop on record” and “its lowest level since 2009.” The index had climbed 8 points to 12.9 in February and after edging up to 4.8 in January.

The April reading, based on firms responding to the survey, indicates “business activity declined dramatically in early April,” the Federal Reserve Bank of New York said in its April 15 report.

By way of comparison, the lowest level this indicator had reached prior to this month was -34.3 during the Great Recession, the New York Fed said.

A negative reading on the index indicates a decline in the sector, while a positive number points to expansion or growth in manufacturing activity.

The survey found 7 percent of respondents reported that conditions had improved over the month, while 85 percent indicated that conditions had worsened, the New York Fed said.

Though current conditions were “extremely weak,” firms expected conditions to be “slightly better” six months from now, according to the New York Fed.

Survey details

The new-orders index fell 57 points to -66.3, and the shipments index dropped 66 points to -68.1, indicating a “sharp decline” in both orders and shipments. Delivery times were longer and inventories were “modestly lower.”

Labor-market indicators were “extremely weak.”

The index for number of employees fell 54 points to -55.3, with nearly 60 percent of respondents indicating lower employment levels. The average workweek index fell to -61.6, with 65 percent reporting shorter workweeks.

The prices-paid index fell 19 points to 5.8, indicating a “slowing” in input-price increases, while the prices-received index fell to -8.4, pointing to a decline in selling prices for the first time since 2016.

Firms anticipate only a small improvement in business conditions over the next six months.

The index for future business conditions edged up 6 points to 7.0. The indexes for future new orders and future shipments declined, but remained positive, suggesting that firms expect orders and shipments to be “modestly higher” in six months compared with this month’s levels.

The capital-expenditures and technology-spending indexes both fell to -11.0, a sign that firms “planned to reduce both kinds of spending.”

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.

Ithaca company designs medical face shield for hospital in COVID-19 fight

Health Care, Manufacturing & Engineering, Regional News, Small Business, Subscriber Only, Technology

ITHACA — Incodema Inc., an Ithaca–based sheet-metal provider, announced it has designed a new face shield that can be sanitized and reused in health-care facilities during the coronavirus pandemic. The company says it responded to “the call to action” of the Cayuga Medical Center (CMC) in Ithaca to find a solution to the face-shield shortage.

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Upstate, statewide consumer sentiment plummet in Q1 over coronavirus concerns

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Consumer sentiment in upstate New York and across the state plunged in the first quarter as the shutdown of much of business and daily life took a toll. The latest quarterly survey of upstate and statewide consumer sentiment that the Siena College Research Institute (SRI) released April 8 measured sentiment at 68.9 in the first

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Consumer sentiment in upstate New York and across the state plunged in the first quarter as the shutdown of much of business and daily life took a toll.

The latest quarterly survey of upstate and statewide consumer sentiment that the Siena College Research Institute (SRI) released April 8 measured sentiment at 68.9 in the first quarter, down 23.5 points from the last measurement of 92.4 in the fourth quarter of 2019.

Upstate’s overall sentiment of 68.9 was 2.5 points above the statewide consumer-sentiment level of 66.4, which fell 26.6 points from the fourth quarter.

The statewide figure was 22.7 points lower than the first-quarter reading of 89.1 for the entire nation, which was down 10.2 points from the fourth-quarter number, as measured by the University of Michigan’s consumer-sentiment index.

All three indexes for New York are below their breakeven points at which optimism and pessimism balance for the first time since December 2011. The national indexes dropped but remain above the breakeven point.

“As the coronavirus took hold of New York, consumer sentiment fell precipitously, signaled a sudden collective feeling of pessimism and reached a low not seen since 2011. A large plurality of consumers now think that the state’s business conditions this year as well as economic times over the coming five years are in trouble. Right now, 58 percent say that it is NOT a good time to buy major consumer items and plans to buy cars, electronics, furniture, homes and home improvements are down between 13 and 27 percent. In 20 years of tracking consumer sentiment in New York, we’ve seen more pessimism but never a drop this severe in this short of a time,” Doug Lonnstrom, professor of statistics and finance at Siena College and SRI founding director, said in the report.

In the first quarter of 2020, buying plans were down 2.8 percentage points since the fourth quarter of 2019 measurement to 18.8 percent for cars/trucks; fell 13.8 points to 38.6 percent for consumer electronics; slid 6.8 points to 24.2 percent for furniture; declined 3 percentage points to 8.1 percent for homes; and fell 6.2 percent to 19 percent for major home improvements.

In SRI’s quarterly analysis of gas and food prices, 26 percent of upstate respondents said the price of gas was having a serious impact on their monthly budgets, which is down from 42 percent in the fourth quarter of 2019 and 41 percent in the third quarter.

In addition, 27 percent of statewide respondents said the price of gas was having a serious impact on their monthly spending plans, which is down from 41 percent in the fourth quarter and 40 percent in the third quarter. Prices at the gas pump have fallen precipitously since the coronavirus crisis started, one of the few economic bright spots.

When asked about food prices, 49 percent of upstate respondents indicated the price of groceries was having a serious impact on their finances, down from 56 percent in the fourth quarter and 56 percent in the third quarter.

At the same time, 55 percent of statewide respondents indicated the price of food was having a serious impact on their monthly finances, down from 58 percent in the fourth quarter and from 60 percent in the third quarter.

SRI conducted its survey of consumer sentiment between March 30 and April 2 by telephone calls to 402 New York adults via landline and cell phone. It has an overall margin of error of plus or minus 3.6 percentage points, according to SRI.

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The Central New York Business Journal has been publishing for 34 years. During that time, the business community in our region has never faced a challenge like the COVID-19 pandemic. While business activity over this past month of social distancing has slowed to a crawl, the need for business news is more urgent than ever.

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The Central New York Business Journal has been publishing for 34 years. During that time, the business community in our region has never faced a challenge like the COVID-19 pandemic.

While business activity over this past month of social distancing has slowed to a crawl, the need for business news is more urgent than ever. The demand for information to help businesses navigate this crisis is growing. We can say that with confidence because we see it in our recent audience analytics.

• At the beginning of the statewide lockdown, we temporarily transitioned to exclusively digital delivery. Since then, we have been emailing the Digital Edition of the Central New York Business Journal (the publication you are reading right now) to an average of just under 17,900 recipients each week. That represents an increase of more than 2,100 recipients per week over the period prior to mid-March.

• Not only have we been sending out more emails, but a growing percentage of them are being opened. Since March 15, the open rate for weekly Digital Edition emails has jumped from 12 percent to 17 percent.

• Our daily Coffee Break and Daily News Alert emails have also shown gains. The open rates for both, which were already well above Constant Contact’s industry averages, increased over two percentage points since mid-March. Those two email publications combined are now opened by recipients over 15,500 times every week.

• The average number of unique users visiting our website (cnybj.com) every day has increased 14 percent since March 15. Daily advertising impressions — the average number of times an ad on our web pages is viewed each day — have climbed 55 percent during the same period.

The entire staff at the Central New York Business Journal is grateful that you have turned to us as your business-news source in these uncertain times. Thank you.

If the content we provide is valuable to you, there are ways you can access more of it and help us to continue making it available.

The best way to stay connected to news and information about the Central New York business community is a subscription that provides a full year of unlimited access to our website and archives and a free copy of the annual Book of Lists, along with the weekly edition. You can subscribe on our website at https://www.cnybj.com/newsstand/

We also offer a number of email publications free of charge. Coffee Break is a news roundup from New York state, the nation, and the world every morning. Daily News Alerts provides local breaking news from our CNYBJ staff every afternoon. BizEventz News & Updates are news and updates on our business events happening in Central New York. Healthcare Provider E-Newsletter is written for and sent directly to health-care providers in the region every other month. You can sign up for any of these free email alerts at: https://www.cnybj.com/news-email-alerts/

Our goal before the pandemic was to serve the Central New York business community through news, advertising opportunities, events, and data delivered across a variety of platforms. We continue to do so now and will keep doing it long after the current crisis has passed. In good times and in bad, we appreciate you being a member of our growing audience and we are proud to be here for you.

ICS acquires Ithaca computer IT firm, Brightworks

Regional News, Small Business, Subscriber Only, Technology

ITHACA — ICS — an information-technology (IT) support firm with offices in Endicott, DeWitt, and Ithaca — announced it has acquired Brightworks Computer Consulting of Ithaca. ICS didn’t disclose the acquisition cost or any financial terms of the its acquisition agreement. As an IT implementation, support, and hosting-services company, the services that Brightworks offers will

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ITHACA — ICS — an information-technology (IT) support firm with offices in Endicott, DeWitt, and Ithaca — announced it has acquired Brightworks Computer Consulting of Ithaca.

ICS didn’t disclose the acquisition cost or any financial terms of the its acquisition agreement.

As an IT implementation, support, and hosting-services company, the services that Brightworks offers will “complement” ICS’s existing capabilities, the firm contends.

ICS offers all the services that Brightworks provides, says Kevin Blake president and CEO of ICS.

“[The firm] has a lot of great customers in Tompkins County, and we can bolster some of [its] offerings by cross-selling some of things we do, like digital security, physical security, phone systems, printing, those types of things,” says Blake, who describes Brightworks as a competitor.

Blake, who is the majority owner of ICS, spoke with CNYBJ on April 10. Travis Hayes is the firm’s minority owner, according to Blake.

The acquisition closed on March 9. Blake met the Brightworks staff the following day, started integrating, and learned about the state’s working-from-home order later that week, he recalls. “It’s been a very interesting time,” Blake adds.

Part of ICS growth strategy

The transaction is part of Blake’s mergers and acquisitions (M&A) growth strategy for ICS, which he has pursued for the past three years. The company’s acquisition of J.B. Kane in Syracuse in June 2018 was part of that plan.

Blake says he’s in negotiations with other managed-service providers (or MSPs as they’re known in the industry) as part of his M&A growth plan.

“We believe our industry is consolidating fast … because of cloud and security and what it takes to be an MSP these days. Smaller MSPs just can’t afford to make the investments that it takes to support clients that have some sort of compliance needs. We’ve made all those investments, and we’re actively pursuing other MSPs to join the ICS family,” says Blake.

He met Brightworks founder and sole owner John Guttridge at an MSP industry event in Orlando, Florida more than a year ago, and that when they started talking.

“We got serious about the [acquisition] conversation in November 2019,” he adds.

Adding employees, customers

With the addition of the 16 Brightworks employees, ICS has about 20 people working in Ithaca. The employees include Guttridge, who is now a senior account manager at ICS.

“Due to the ever-changing information-technology landscape and the growing cybersecurity needs, we wanted to find a partner that could support our customers with a higher level of maturity and serviceability than we could achieve in the near future,” Guttridge said in an ICS news release.

The company’s overall employee count is now at just under 100 workers, according to Blake. With the addition of about 100 Brightworks clients, ICS now services between 700 and 800 customers between New York and Northeastern Pennsylvania.

The Brightworks office in Ithaca, located at 123 W. State St., is a 2,300-square-foot space. ICS currently operates a 1,000-square-foot space located at 840 Hanshaw Road in the village of Cayuga Heights, near Ithaca.

Blake says the firm’s plan is to eventually move out of the Hanshaw Road location to the Brightworks building. He says Guttridge still owns the building and ICS is leasing it from him.

Blake declines to disclose the firm’s annual revenue, but notes that about 12 percent of its annual sales are generated from its clients in Northeastern Pennsylvania.

Adirondack North Country CBIT to reschedule transition workshops to the fall

Health Care, Subscriber Only

SARANAC LAKE — The Adirondack North Country Center for Businesses in Transition (CBIT), now in its second year, says it plans to reschedule its workshop series for transitioning businesses to this fall. Some of the workshops were originally scheduled for both April and May, but CBIT is currently focusing its efforts on COVID-19 response and

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Some of the workshops were originally scheduled for both April and May, but CBIT is currently focusing its efforts on COVID-19 response and e-commerce for small businesses, Danielle Delaini, business transition program coordinator, tells CNYBJ in an email.

The CBIT is a program of the Saranac Lake–based Adirondack North Country Association (ANCA). The Center is a collaboration of regional organizations and leaders whose goal is to support existing business owners and aspiring entrepreneurs in developing successful business-transition strategies.

The center’s workshop series seeks to address topics relevant for transitioning businesses. The workshops were scheduled to be hosted by partner organizations throughout the region.

They include “Business Transitions Overview: Where Do You Start?,” hosted by Lewis County Economic Development/IDA; and “Mentoring a New Owner: The First Year,” hosted by the St. Lawrence County Chamber of Commerce.

They also include, “From Hello to Key Transfer: Communicating During the Transition Process,” hosted by Ticonderoga Area Chamber of Commerce; “Marketing Your Available Business,” hosted by the Saranac Lake Area Chamber of Commerce and the County of Franklin Economic Development/IDA.

The remaining workshops are titled “Determining Value: Perspectives from Buyers and Sellers,” hosted by Hamilton County IDA; and “Your Best Possible Successor is Already Working for You,” hosted by Greater Watertown-North Country Chamber of Commerce.

CBIT announced the topics for its 2020 workshop series following its annual gathering of lead partners and representatives in Saranac Lake on Jan. 17.

North Country business owners looking to transition their operations to new owners or a new ownership model — along with aspiring entrepreneurs looking to take over an existing business — can contact CBIT at transitions@adirondack.org or (518) 891-6200 for more information or to be connected with a community liaison.

Information about the center and its programs can be found at www.adirondack.org/businesses-in-transition.

About CBIT

The Adirondack North Country Center for Businesses in Transition works to address the loss of area businesses by providing matchmaking services with potential buyers, access to planning tools, and connection with existing services.

The CBIT is a partnership between regional organizations and individuals “invested in the retention of local businesses and the future of our communities,” per the ANCA website. The goal is to help owners sell their businesses on the open market, complete intergenerational family transitions, or convert to an employee-owned or cooperative model.

DOL issues temporary regulations on Families First Coronavirus Response Act

Business Mentors, Employee Benefits & Human Resources, Health Care, Subscriber Only

On April 1, 2020, the Department of Labor (DOL) published the first regulations on the Families First Coronavirus Response Act (FFCRA). As a reminder, the FFRCA became effective on April 1 as well, and provides for emergency family and medical leave (EFMLA) and emergency paid sick leave (EPSL). Both laws apply to private employers with

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• EFMLA provides for leave if an eligible employee is unable to work or telework (including work from home) due to a bona-fide need for leave to care for his/her child whose school or place of care has been closed or whose regular childcare provider is unavailable, due to a public health emergency regarding COVID-19 declared by a federal, state, or local authority.

• EPSL provides for up to 80 hours of leave for eligible full-time employees (hours pro-rated for part-time employees) for the following reasons:

1. The employee is subject to a governmental quarantine or isolation order related to COVID-19;

2. The worker has been advised by a health-care provider to self-quarantine due to COVID-19 concerns;

3. The employee is experiencing symptoms of COVID-19 and seeking diagnosis;

4. The worker is caring for an individual subject to a governmental quarantine/isolation order or health-care provider recommendation;

5. The employee is caring for an eligible “son or daughter” under age 18, including if school has been closed; or

6. The worker is experiencing any other “substantially similar condition” specified by Health and Human Services (HHS) Secretary.

The DOL regulations are extensive and provide further interpretation on the interplay between different types of leave, intermittent leave, and required documentation, among others. The bullet points below summarize some important points from the regulations. Please note that this is not meant to be an all-inclusive summary.

Definitions

• “Order of Quarantine” includes “when a federal, state, or local government authority has advised categories of citizens to shelter in place, stay at home, isolate, or quarantine,” and those employees cannot work, even though their employers have work for them to do if they were able to come to work.

• “Individual” is defined as “an employee’s immediate family member, a person who regularly resides in the employee’s home, or a similar person with whom the employee has a relationship that creates an expectation that the employee would care for the person if he or she were quarantined or self-quarantined.” This definition is applicable when an employee requests EPSL.

• “Child” is defined as a biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis, who is either (a) under 18 years of age; or (b) 18 years of age or older and incapable of self-care because of a mental or physical disability.

Leave Coordination

• The first 10 days of EFMLA are unpaid and run concurrently with EPSL when the sick leave is taken to care for child whose school has closed due to COVID-19.

• Employers cannot require employees to use accrued paid time off before taking EPSL. Employees may, however, elect to do so.

• An employee can only take a maximum of 12 workweeks of Expanded Family and Medical Leave during the period in which the leave may be taken (April 1, 2020 to Dec. 31, 2020) even if that period spans two FMLA leave 12-month periods.

• Employees are only eligible for up to 80 hours of leave under the EPSLA, even if they switch employers during the middle of the leave. Please note that this may be difficult for employers to enforce.

Intermittent Leave

• Intermittent leave is allowed under the EFMLA if agreed upon by both the employer and the employee. This is best memorialized in a written statement.

• Intermittent leave is allowed under EPSL if an employee takes EPSL to care for a child whose school has closed due to COVID-19. However, in all other cases, EPSL must be taken consecutively. Exception: If an employee is teleworking, and the employer and employee agree, EPSL can be taken intermittently for any qualifying reason.

• If agreed upon, intermittent leave can be taken in increments as short as one hour.

• The DOL has suspended the “continuous leave” regulation (29 C.F.R. 760(a)) for employees who are teleworking during the pandemic.

Documentation

• An employer can deny an employee leave under the EPSL or EFMLA if the employee does not submit materials sufficient to support the employer’s applicable tax credit. Please note that employers should exercise caution when denying leave for this reason.

• Employers must generally maintain documentation supporting an employer’s decision to grant or deny EFMLA or EPSL for four years.

• If an employer relies upon an employee’s oral statements in granting or denying leave under EFMLA or EPSL, “the employer is required to document and maintain such information in its records.”

Small-business exceptions

The regulations provide information on how an employer with fewer than 50 employees can be exempt from EFMLA and EPSL under certain conditions, as well as how employers with fewer than 25 employees can deny job restoration under specific circumstances.

Please note that these new COVID-19 laws are intricate and the information and guidance relating to these laws continues to evolve on a daily basis. A prior information memo released on the DOL’s FAQ’s regarding the FFCRA can be found at: https://www.bsk.com/new-york-labor-and-employment-law-report/us-department-of-labor-issues-questions-and-answers-regarding-the-families-first-coronavirus-response-act

Theresa E. Rusnak is an associate attorney in the Rochester office of Syracuse–based Bond, Schoeneck & King PLLC. This viewpoint article is drawn from an April 3 post on the firm’s New York Labor and Employment Law Report blog. Contact Rusnak at trusnak@bsk.com

Upstate Medical graduates 65 students early to help in COVID-19 fight

Health Care, Subscriber Only

SYRACUSE — Upstate Medical University in Syracuse on April 10 graduated 65 medical students who became doctors early so they could join other health-care workers in helping patients during the COVID-19 pandemic. Gov. Andrew Cuomo earlier this month issued an executive order enabling medical students to graduate early to aid with the COVID fight, Upstate

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Gov. Andrew Cuomo earlier this month issued an executive order enabling medical students to graduate early to aid with the COVID fight, Upstate Medical University said.

The 20-minute virtual ceremony featured the recitation of the physician’s oath and remarks by Dr. Lawrence Chin, dean of Upstate’s College of Medicine.

The dean expressed his disappointment at not being able to share this proud moment with students in person.

“As much as I wanted to share and celebrate these moments with you, I believe your sacrifice is the right thing to keep this terrible disease from causing more damage,” said Chin.

Students who participated in the ceremony “did so with the intent” of going to hospitals to provide relief to an already strained health care workforce treating COVID patients, Upstate Medical University.

Dr. Jared Sweeney, who took part in the ceremony from his apartment in Albany, “wants to support his health care colleagues in any way possible,” per an Upstate Medical University news release.

“Even though I may have limited experience, I’m ready to offer myself to do what’s necessary,” he said. “I know staffs are strained, and any role I can play to undo the burden on many, I will be ready.”

Sweeney is set to begin his residency in neurosurgery at Albany Medical Center on July 1. He’s contacted the medical center to offer his assistance. He also completed the online New York State Department of Health survey for physicians looking to support the COVID-19 effort in New York City.

“This what we signed up for when we entered this field,” Sweeney added.

The remaining medical students — and students in the colleges of Graduate Studies, Health Professions and Nursing — will receive their degrees in a virtual ceremony May 1, the medical school said.

Upstate University Hospital sends 44 to help Long Island hospital in COVID-19 fight

Health Care, Subscriber Only

SYRACUSE — As of April 14, Upstate University Hospital has sent 44 employees, in two groups of 22 each, to Stony Brook University Hospital on Long Island to help treat patients with COVID-19. The second group — which departed the hospital the morning of April 14 — included 12 nurses, two respiratory therapists, three pharmacists,

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SYRACUSE — As of April 14, Upstate University Hospital has sent 44 employees, in two groups of 22 each, to Stony Brook University Hospital on Long Island to help treat patients with COVID-19.

The second group — which departed the hospital the morning of April 14 — included 12 nurses, two respiratory therapists, three pharmacists, and five pharmacy technicians, the hospital announced.

The pharmacists are needed to continue to sustain the core pharmacy services at Stony Brook University Hospital, such as mixing chemotherapy compounds, Upstate said. The pharmacists will also support Stony Brook’s sterile compounding needs, which includes such services as preparing intravenous fluids.

Pharmacy technicians will assist the hospital with drug delivery to patient floors. Respiratory therapists will be working in the intensive-care units.

Upstate University Hospital had already sent a group of 22 nurses on April 9 to help the staff at Stony Brook.

Dr. Robert Corona, president and CEO of Upstate University Hospital, said the top official at Stony Brook University Hospital on Long Island “made a call out for help.”

“They need staff badly. The call went to our nursing staff and we have a large [contingent] of nurses that are going to be heading downstate to help out with the Stony Brook initiative,” Corona said in remarks at the April 8 Onondaga County daily coronavirus briefing at the Oncenter.

Most of them will stay at Stony Brook University for two weeks. The Long Island university will provide food and lodging.

“They are getting overwhelmed right now with COVID-positive patients. They’re building a 1,000-bed hospital on their football field, and our nursing staff is going to go down there and support them, so I’m very, very happy about that,” Corona said.

Hospitals on Long Island along with the rest of the New York City area have been inundated with sick patients during the coronavirus outbreak.

The Upstate nurses who went to Stony Brook University Hospital are working alongside staff in intensive-care units with critically ill patients on ventilators and in the emergency department.

“There are fellow [registered nurses] from across our region who are also answering New York City and Long Island’s call. The passion for our patients and the passion for nursing’s profession is really the selfless driver of these incredible staff [members],” Nancy Page, chief nursing officer of Upstate University Hospital, said in remarks following Corona’s announcement at the Oncenter. “Upstate nurses come from across our emergency departments, from all of our intensive care units.”

Onondaga County Executive Ryan McMahon praised the efforts of the nurses at Upstate University Hospital, both locally and those who’ve traveled to Stony Brook.

“We’re one state. What can we do to help? Upstate and Stony Brook have a proud history of helping each other, and certainly Long Island, when you look at what is happening in New York State, Long Island is really in a point of crisis right now,” said McMahon.

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